Directorate General Customs Valuation (DGCV) has agreed to evaluate automotive parts on unit basis for customs clearance. This was revealed by Chairman Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) Captain Muhammad Akram (Retd).
He said that representatives of PAAPAM held a meeting with the officials of DGCV in order to persuade them to adopt new system of evaluating imported automotive parts on unit basis.
He said that the custom clearance of the said commodity was presently being done on weight basis and past governments incurred huge revenue losses in billions, due to said reason.
Now, the DGCV after taking cognizance of the malpractice having direct negative impact on the economy of the country agreed to make the basic change of fixation of import values and subsequent clearance from weight to unit base system.
PAAPAM also proposed to start clearance of few auto parts on unit basis to assess positive impact on revenue collection and claimed that through this new method, the customs department would generate additional Rs 500 billion per annum to national kitty.
In addition, the domestic production capacity of the automotive parts manufacturing companies will increase tremendously resulting to create 400,000 direct jobs approximately, the chairman PAAPAM said.
He said that DGCV communicated PAAPAM that new system was to be completed by the end current month.
He urged the directorate to put this new system in place at the earliest and in totality, covering all imported automotive parts of cars, tractors, light commercial vehicles, motorcycles etc.
Copyright Business Recorder, 2019
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